hedge funds manipulate stock in secret, page-22

  1. 3,648 Posts.
    Rot - your last statement is almost contradictory, "Until some criminality can be proven (such as collusion) by hedge funds, one must consider the short sales as a legitimate reaction to fundamental concerns about the state of the market."

    One can easily say that, however if true then the downside must track the markets downside, if it is to be legitimate. For example, if the market is down 20%, so too would a given sp, give or take a few %. thi sis not what we have seen with Centro.

    The text you quote indicates that "blind gamblers" will follow any rumour, hence rumours or articles creating FUD for a stock will be interpreted as negative and so bu inference, blind gamblers will sell out - adding to the confusion.

    I agree with the much of the article, however I don't agree with your interpretation, nor with your conclusion that were there's smoke, there's fire. More a case of now finding the smoking gun and learning that the person holding it had no intention of killing you and just wanted to frighten you into submission.

    Only now, I think and hope, we have finally found the gun can only shoot blanks.

 
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